Grupo Catalana Occidente (GCO) Q3 2024 earnings summary

Executive summary

• Achieved 2.9% growth in turnover to €4,563.2M and 9.2% increase in consolidated net income to €574.5M for the first nine months of 2024, outperforming the Spanish insurance sector.

• Attributable profit reached €518.4M, up 10.2% year-over-year.

• Traditional business, credit insurance, and funeral business all contributed positively, with traditional business showing double-digit growth and recurring premiums up 6.5%.

• Maintained strong solvency with a 232% Solvency II ratio and confirmed 'A' (AM Best) and 'A1' (Moody's) ratings.

• Dividend policy remained stable, with a 7.5% increase in 2024 and share price up nearly 30% year-to-date.

Financial highlights

• Total turnover exceeded €4.5B, with traditional business written premiums up 5.6% to €2,446.8M and recurring premiums up 6.5%.

• Consolidated net income reached €574.5M (+9.2%); attributable result €518.4M (+10.2%).

• Combined ratio improved to 90.5% in traditional business (-2.0 p.p.), while credit insurance combined ratio was 74.3% (+3.1 p.p.).

• Financial result grew by 17% to nearly €170M.

• Managed funds/assets under management increased to €16,756.0M (+9.1% from year-end 2023).

Outlook and guidance

• Expect continued positive trends in traditional business, though growth may moderate due to recent weather events.

• Strategy for 2024 focuses on growth through new products, digitalization, and integration of the Mémora funeral business.

• Profitability targets include maintaining a strong combined ratio and leveraging efficiency gains from business unification and AI adoption.

• Solvency and sustainability remain priorities, with a 232% solvency ratio and low ESG risk rating.

• Analyst consensus recommends "buy" with a target price of €49.4 per share.